Which would you choose? BRRR Vs Turnkey

[Israel Hernandez]

Scenario 

Both Homes are SFR 3/2 located in the same general area.

Property 1.

HARD money deal because of the competition... These properties fly off the shelves in CA.

Built in early 60's

Purchase price $90k 20% down

Rate 9% 30 year amtz PITI $723 mon No Pre Pay Pen

Market Rent $1200 mon

4pts Origination

Antoher 3-4k in escrow closing costs

About $10-15k in Rehab costs

Another $3-4k to refi out of Hard Money loan

ARV $145k maybe...

Property 2

Conventional Deal

Built in late 80's

Purchase Price $160k 20% down 

Rate 4.375% 30 year amtz PITI $856 mon

Market Rent $1350-$1400 mon

1pt Origination

$3-4 k in escrow closing costs

$0 rehab

Pretty Much Turnkey

Look forward to your feedback

Thanks 

Izzy